Kimberly-Clark Corporation (KMB)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 13,339,000 | 13,474,000 | 13,690,000 | 13,892,000 | 13,998,000 | 14,125,000 | 14,132,000 | 13,781,000 | 13,312,000 | 13,020,000 | 12,596,000 | 12,199,000 | 12,306,000 | 12,151,000 | 12,143,000 | 12,434,000 | 12,421,000 | 12,585,000 | 12,666,000 | 12,701,000 |
| Payables | US$ in thousands | 3,653,000 | 3,490,000 | 3,713,000 | 3,788,000 | 3,813,000 | 3,660,000 | 3,701,000 | 3,846,000 | 3,840,000 | 3,519,000 | 3,337,000 | 3,152,000 | 3,336,000 | 2,995,000 | 3,032,000 | 2,876,000 | 3,055,000 | 2,942,000 | 2,993,000 | 3,027,000 |
| Payables turnover | 3.65 | 3.86 | 3.69 | 3.67 | 3.67 | 3.86 | 3.82 | 3.58 | 3.47 | 3.70 | 3.77 | 3.87 | 3.69 | 4.06 | 4.00 | 4.32 | 4.07 | 4.28 | 4.23 | 4.20 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $13,339,000K ÷ $3,653,000K
= 3.65
Kimberly-Clark Corp.'s payables turnover has shown some variability over the past eight quarters. The payables turnover ratio measures how efficiently the company is managing its trade credit by evaluating how quickly it pays its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently or quickly.
Based on the data provided, we can see that the payables turnover ratio has ranged from 3.61 to 3.87 over the past eight quarters. The average payables turnover ratio during this period was approximately 3.72. This indicates that, on average, Kimberly-Clark Corp. is paying its suppliers approximately 3.72 times a year.
The slight fluctuations in the payables turnover ratio suggest that Kimberly-Clark Corp. has been relatively consistent in managing its trade credit obligations. It is important to note that a stable payables turnover ratio could indicate effective cash flow management and good relationships with suppliers. However, it is also important to ensure that the company is not taking advantage of extended payment terms at the expense of suppliers' financial stability. A deeper analysis of the company's payment terms and supplier relationships would provide a more comprehensive understanding of its payables turnover performance.
Peer comparison
Dec 31, 2023
See also:
Kimberly-Clark Corporation Payables Turnover (Quarterly Data)